Our guide to fully comprehensive car insurance
If you are buying car insurance, you first have to decide on the type of policy you need. There are basically three options. Third party insurance covers damage or injury to another person or property and is the legal minimum requirement to take a car on a UK road. The downside of a third party policy is that it does not insure your own car. If it is stolen, for example, you would have to pay for a new vehicle out of your own pocket.\
Motorists who choose third party fire and theft (TPFT) are buying limited protection for their own vehicle because the policy would pay out if the car was stolen by thieves or destroyed in a fire. But what if your car was damaged or written off in an accident? If the accident was your fault, you would not be able to claim on a TPFT policy. In other words, you would have to pay for the cost of repairs or a new car yourself - and that could run into thousands of pounds.
So it's perhaps not surprising that most drivers choose fully comprehensive insurance - about 75% according to some estimates. When you buy fully comprehensive car insurance, you also buy all-round protection for you and your car.
Most comprehensive policies insure the policyholder to drive another car, but you might only get third party insurance - and you will almost always need the owner's permission.
Don't assume that all fully comprehensive insurance policies are alike. Some insurers, for example, include a courtesy car if your vehicle is off the road. Or they might offer European cover if you want to take your car on the Continent. Other common add-ons include legal expenses and windscreen insurance. But the extras usually come at a price. So make sure that compare like for like when you are searching for car insurance. And remember that the cheapest policy is not always the best deal. MoneySupermarket's comparison service can help you choose the best policy for your needs.
But always check out all types of policy because third party cover has become more expensive as it has become more popular. The cost of fully comprehensive car insurance for young male drivers is often prohibitively high - the average premium for a 17-22 year-old man is currently £2,872. So many opt for third party or third party fire and theft insurance to save money. But young men are statistically more likely to make a claim. They are therefore more risky and costly to insure, so insurers have pushed up the price of even basic cover. These days there is often little or no difference between the premiums for third party cover and fully comprehensive insurance.
Of course, motor insurance is expensive, whatever your age or gender. The average premium is currently just over £900, an increase of 40% over the past year. But there are ways to keep the cost of cover under control.
You should always shop around for competitive quotes when your insurance is due for renewal, but one in four drivers automatically sticks with their existing insurer. MoneySupermarket's free independent comparison service is a quick and easy way to search the market and save money - the typical customer cuts more than £300 off their car insurance through our website.
Almost all car insurance policies include a compulsory excess, which is the amount you must pay towards any claim. If you agree a higher voluntary excess, you can usually negotiate a lower premium.
If you fit your car with an approved security device, such as an alarm or immobiliser, you can help to deter thieves and so reduce the likelihood of a theft claim - and that could mean a discount on your premium. You should also keep your care secure, preferable in a locked garage overnight, or at least off the street.
Motorists who drive fewer miles are less likely to make claims. So if you drive your car infrequently, negotiate a low mileage limit with your insurer and you should be able to cut the cost of cover.
Drivers who don't make any claims on their car insurance policy can build up a no-claims discount (NCD). The discount can be valuable: in some cases it can knock up to 75% off your premium after five consecutive claim-free years. It can therefore make sense to pay for any minor damage yourself to protect your NCD.
So it's perhaps not surprising that most drivers choose fully comprehensive insurance - about 75% according to some estimates. When you buy fully comprehensive car insurance, you also buy all-round protection for you and your car.
What does fully comprehensive insurance cover?
A standard fully comprehensive insurance policy covers your liability for injuries to other people, including passengers, as well as damage to other people's property. Your own car is also insured against fire, theft and accidental damage. The policy also usually covers personal effects, up to a certain limit, such as a sat-nav system.Most comprehensive policies insure the policyholder to drive another car, but you might only get third party insurance - and you will almost always need the owner's permission.
Don't assume that all fully comprehensive insurance policies are alike. Some insurers, for example, include a courtesy car if your vehicle is off the road. Or they might offer European cover if you want to take your car on the Continent. Other common add-ons include legal expenses and windscreen insurance. But the extras usually come at a price. So make sure that compare like for like when you are searching for car insurance. And remember that the cheapest policy is not always the best deal. MoneySupermarket's comparison service can help you choose the best policy for your needs.
Is fully comprehensive insurance the right choice for me?
If you drive an old banger, you might be happy with a more limited third party or third party fire and theft policy, especially if the premium for fully comprehensive insurance is more than the car is worth.But always check out all types of policy because third party cover has become more expensive as it has become more popular. The cost of fully comprehensive car insurance for young male drivers is often prohibitively high - the average premium for a 17-22 year-old man is currently £2,872. So many opt for third party or third party fire and theft insurance to save money. But young men are statistically more likely to make a claim. They are therefore more risky and costly to insure, so insurers have pushed up the price of even basic cover. These days there is often little or no difference between the premiums for third party cover and fully comprehensive insurance.
Of course, motor insurance is expensive, whatever your age or gender. The average premium is currently just over £900, an increase of 40% over the past year. But there are ways to keep the cost of cover under control.
You should always shop around for competitive quotes when your insurance is due for renewal, but one in four drivers automatically sticks with their existing insurer. MoneySupermarket's free independent comparison service is a quick and easy way to search the market and save money - the typical customer cuts more than £300 off their car insurance through our website.
Almost all car insurance policies include a compulsory excess, which is the amount you must pay towards any claim. If you agree a higher voluntary excess, you can usually negotiate a lower premium.
If you fit your car with an approved security device, such as an alarm or immobiliser, you can help to deter thieves and so reduce the likelihood of a theft claim - and that could mean a discount on your premium. You should also keep your care secure, preferable in a locked garage overnight, or at least off the street.
Motorists who drive fewer miles are less likely to make claims. So if you drive your car infrequently, negotiate a low mileage limit with your insurer and you should be able to cut the cost of cover.
Drivers who don't make any claims on their car insurance policy can build up a no-claims discount (NCD). The discount can be valuable: in some cases it can knock up to 75% off your premium after five consecutive claim-free years. It can therefore make sense to pay for any minor damage yourself to protect your NCD.
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